Shuklatirth Seva Sahakari Mandli Ltd. Vs. ITO(E)

Parties Involved

Facts Summary

The assessee, Shuklatirth Seva Sahakari Mandli Ltd., a co-operative credit society, did not file its return of income for the Assessment Year 2010-11. Based on information about cash deposits of Rs. 42,39,074/- in the assessee's bank account during FY 2009-10, the case was reopened under section 147 of the Income-tax Act, 1961. The Assessing Officer passed an ex-parte assessment order on 07.12.2017, making an addition of Rs. 42,39,074/- under section 69 of the Act. The assessee filed an appeal before the Commissioner of Income-Tax (Appeals), which was dismissed for non-compliance with section 249(4)(b) of the Act. The assessee also filed a rectification application under section 154, which was rejected by the Commissioner of Income-Tax (Appeals).…

Legal Issues

• 1. Ld. CIT (A) (NFAC) erred in law and on facts dismissing the appeal ex parte since all the notices issued during the appellate proceedings were sent to some email id not belonging to the appellant.
• 2. Ld. CIT (A) (NFAC) erred in law and on facts in not admitting the appeal filed by the appellant u/s 249(4) (b) of the Act without appreciating the fact that the appellant a registered co-operative credit society under the provisions of Sec. 80(P) was exempted from paying taxes.
• 3. Ld. CIT (A) (NFAC) erred in law and on facts in confirming the addition of cash deposits of Rs. 42, 39,074/- ignoring the fact that appellant credit society dealt in trading of pesticides, agricultural seeds, food grains for the benefit of members staying in remote areas on co-operative basis and such cash deposits in the bank account are exclusively sale proceeds of trading receipts.
• 4. Ld. CIT (A) (NFAC) erred in law and on facts in wrongly recording the amount of addition as Rs. 72, 39,074/- instead of Rs.42, 39, 074/- made by AO in the assessment order thus enhancing the addition wrongly.
• 5. Ld. CIT (A) (NFAC) erred in law and on facts in not adjudicating on merits by considering statement of facts and grounds of appeal which is against the principles of natural justice.
• 6. Levy of interest u/s 234A/ 234B & 234C of the Act is unjustified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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